Tuesday, January 13, 2009
Nortel Networks Files For Chapter 11
More bad new as yet another major telco supplier bites the fiscal dust. Infrastructure equipment vendor Nortel Networks has today moved for Chapter 11 Protection.
Nortel Networks, which faces a $107 million bond interest payment this week, filed for Chapter 11 protection in U.S. liquidation Court in Wilmington, Del., dragged down by a sudden drop in demand for its formerly lucrative voice-only telecom network.
In 2000 Nortel was worth an estimated $250bn.
What more can you say, with Alcatel-Lucent in the deep sticky,. Nokia selling off non-core businesses, and as I type this rumours have just that Chinese "Cisco alike" Huawei may be intersted in buying Nortel , whilst Nortel is a nominally a Canadian company I can't see the American Government smiling on that one. Expect Cisco to enter the fray...